Performance Sports To Consolidate Baseball-softball Businesses

By Tomi KilgoreMarketsMarketWatch Pulse

Performance Sports Group Ltd. said Thursday that it will restructure its baseball and softball businesses, a sign that the sports equipment maker continues to struggle in that segment. The company said it will consolidate all baseball/softball operations under its Easton brand, resulting in the closure of its Combat facilities in Kent, Wash. and Ottawa. The company said it will continue to sell the Combat Maxum line of bats, but will immediately cease sales of all other Combat products. On March 8, the stock had suffered its biggest-ever one-day decline--66%--after the company cut its profit outlook, citing weakness in the baseball and softball market. The company said it was also being hurt by customer concerns about the fallout from the bankruptcies of sporting goods retailer Sports Authority in March and internet baseball retailer Team Express last year. The stock, which was still inactive in premarket trade, has plunged 68% year to date, while the S&P 500 has gained 6.3%.

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